Millions at risk of financial scams as FCA launches new ‘Firm Checker’ tool

Consumers can now verify whether a financial firm is genuine, as investment and pension scams hit an estimated 800,000 people

With reports of investment and pension scams now affecting an estimated 800,000 people in just one year, the FCA has launched a new tool to help consumers quickly check whether a financial firm is genuine.

The Firm Checker is designed to make it easier for people to verify a company’s authorisation status and confirm its official contact details – a simple step that could stop fraudsters in their tracks.

The launch follows new data from the FCA’s Financial Lives 2024 survey, which found that 1.5% of UK adults had been targeted by a pensions or investments-related scam in the 12 months to May 2024. Many came through social media ads, cold calls or cloned websites, where scammers pose as legitimate businesses.

Sheree Howard, executive director of authorisations at the FCA, said:

“Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims. Whether you’re considering an investment, pension opportunity, loan or other financial service, use Firm Checker to confirm the firm is authorised and help fight financial crime.”

The FCA explains that Firm Checker helps users confirm a firm’s authorisation status and official contact details, enabling consumers to identify when scammers are posing as legitimate businesses.

How scams are currently reaching consumers

FCA research indicates a range of initial contact routes for those who experienced Authorised Push Payment (APP) fraud or unauthorised investment or pension-related scams. APP fraud happens when someone is tricked into transferring money to a scammer’s account, typically because the scammer poses as a trusted organisation, and pressures them into moving their money.

• Around 17% first saw a promotional post on social media
• 17% were contacted by telephone
• 16% were approached via text message, WhatsApp or another messaging platform

The FCA notes that scammers may imitate genuine businesses by replicating branding, websites or phone numbers, making it harder for people to identify whether communication is legitimate.

What Firm Checker offers

Firm Checker has been developed and user-tested to provide a simplified way for consumers to establish whether a firm is authorised for the services it is offering. The tool sits alongside the existing Financial Services Register, which remains the full regulatory record of all authorised firms.

The FCA reports that it is continuing to explore further improvements to support clarity for consumers across its digital tools.

Where this fits in wider fraud prevention

The FCA’s latest Financial Lives survey suggests many adults take some precautionary steps when approached about financial products.

• 72% said they usually reject unsolicited calls, emails or texts related to investment or pension opportunities
• 60% said they usually verify the authenticity of communications before sharing personal or financial information

Authorised firms are required to meet FCA regulatory standards and their customers may be able to access dispute resolution services or statutory protection schemes.

Essential information about the Firm Checker

Q: What is the FCA Firm Checker?
A: Firm Checker is a new FCA tool that allows the public to check whether a financial firm is authorised and to confirm its official contact details.

Q: How many people reported scams?
A: The FCA’s survey estimates that around 1.5% of UK adults – equivalent to roughly 800,000 people – reported experiencing an investment or pensions-related scam in the 12 months to May 2024.

Q: How are people being contacted?
A: According to the FCA, social media posts, phone calls and messaging platforms were among the most common first points of contact for those who experienced related scams.

Q: Why is the FCA introducing this tool now?
A: The FCA states that Firm Checker is part of ongoing work to support consumers in identifying authorised firms and understanding which services they are permitted to provide.

Q: Where can I find the Firm Checker tool?
A: You can find the new tool on the FCA’s website following this link: https://www.fca.org.uk/consumers/fca-firm-checker